Mr. Charle Gamba reports

CANACOL ENERGY LTD. STARTS PRODUCTION AND SALE OF LNG

Canacol Energy Ltd. has commenced the production and sale of liquified natural gas (LNG), the first such operation in Colombia. The corporation is also in negotiation with Galileo Technologies to form a joint venture, which will install terminals at other locations in Colombia and supply end-user solutions with the objective to replace diesel, fuel oil, compressed natural gas, propane and other fuels with LNG. LNG is a cleaner, cheaper and safer solution that combines both lower cost with lower emissions of pollutants.

Charle Gamba, president and chief executive officer of the corporation, commented: "Given the limited capacity of the gas pipeline infrastructure in Colombia, industrial, commercial and residential consumers not located along existing pipeline routes currently use 145 million standard cubic feet per day of compressed natural gas and propane that is transported long distances via truck as an energy source. LNG can replace diesel, fuel oil, compressed gas, propane and other fuels at a considerable reduction in price given the relatively lower cost of natural gas and the large volume of liquified gas that can be transported by truck. Compressed natural gas, for example, costs three times more to transport than LNG, resulting in the potential for significant cost savings for consumers who switch to LNG. With our joint venture partners Galileo providing the technology, our objective is to build other liquefaction terminals at other strategic sites in Colombia with the goal of replacing the use of diesel, fuel oil, compressed natural gas, propane and other fuels with LNG at both lower cost to consumers and lower emission of pollutants."

During the course of 2019 the corporation installed four natural gas liquefaction modules purchased from Galileo at its main gas processing facility located at Jobo. The modules are capable of converting 2.4 million standard cubic feet per day of gas into 29,000 gallons of LNG. This LNG is being sold to a third party at the plant gate for distribution via trucks to its clients in Antioquia and Santander as far as 800 kilometres from Jobo.

Sixty-five million standard cubic feet per day of compressed natural gas and 80 million standard cubic feet per day of propane are currently consumed in Colombia, with a significant amount of the propane being imported from the United States. The objective of the joint venture with Galileo is to install terminals in other parts of Colombia close to gas pipelines where Canacol can physically ship or swap its gas to be liquified, with the goal of replacing diesel, fuel oil, compressed natural gas, propane and other fuels with lower cost and lower emission LNG.

About Canacol Energy Ltd.

Canacol is an exploration and production company with operations focused in Colombia.

We seek Safe Harbor.